{"id":4132,"date":"2026-10-22T01:58:08","date_gmt":"2026-10-22T01:58:08","guid":{"rendered":"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/key-person-insurance-franchise-business\/"},"modified":"2026-10-30T02:38:34","modified_gmt":"2026-10-30T02:38:34","slug":"key-person-insurance-franchise-business","status":"publish","type":"page","link":"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/key-person-insurance-franchise-business\/","title":{"rendered":"Key Person Insurance for Franchise Owners in Florida"},"content":{"rendered":"\n<div class=\"wp-block-cover alignfull is-dark chg-hero\" style=\"min-height:460px;aspect-ratio:unset;\"><span aria-hidden=\"true\" class=\"wp-block-cover__background has-background-dim-60 has-background-dim wp-block-cover__gradient-background has-background-gradient\" style=\"background:linear-gradient(90deg,rgba(32,36,46,1) 0%,rgba(32,36,46,1) 55%,rgba(32,36,46,0.7) 100%)\"><\/span><img class=\"wp-block-cover__image-background wp-image-4131\" alt=\"A senior operations manager reviews production schedules at a workstation in a busy manufacturing facility, with colleagues working in the background.\" src=\"https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/a-senior-operations-manager-reviews-production-schedules-at-photo-12.jpg\" width=\"1376\" height=\"768\" srcset=\"https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/a-senior-operations-manager-reviews-production-schedules-at-photo-12-150x150.jpg 150w, https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/a-senior-operations-manager-reviews-production-schedules-at-photo-12-300x167.jpg 300w, https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/a-senior-operations-manager-reviews-production-schedules-at-photo-12-768x429.jpg 768w, https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/a-senior-operations-manager-reviews-production-schedules-at-photo-12-1024x572.jpg 1024w, https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/a-senior-operations-manager-reviews-production-schedules-at-photo-12.jpg 1376w\" sizes=\"(max-width: 825px) 825px, 100vw\" fetchpriority=\"high\" decoding=\"async\"\/><div class=\"wp-block-cover__inner-container has-global-padding is-layout-constrained wp-block-cover-is-layout-constrained\">\n<p class=\"chg-eyebrow has-base-color has-text-color wp-block-paragraph\" style=\"text-shadow:0 1px 3px rgba(0,0,0,0.6),0 0 18px rgba(0,0,0,0.35)\">Key Person Insurance | Florida<\/p><h1 class=\"wp-block-heading has-base-color has-text-color\" style=\"text-shadow:0 1px 3px rgba(0,0,0,0.6),0 0 18px rgba(0,0,0,0.35)\">Protect Your Franchise if Its Key Person Is Lost<\/h1><p class=\"has-base-color has-text-color wp-block-paragraph\" style=\"font-size:clamp(0.875rem, 0.875rem + ((1vw - 0.2rem) * 0.625), 1.25rem);text-shadow:0 1px 3px rgba(0,0,0,0.6),0 0 18px rgba(0,0,0,0.35)\">NR CPAs &amp; Business Advisors helps Florida franchise owners review key person coverage with a CPA&#x27;s view of tax and cash flow. Insurance is offered by Nischay Rawal, a licensed insurance agent, separately from the accounting practice.<\/p><div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\"><div class=\"wp-block-button chg-cta chg-cta-call\"><a class=\"wp-block-button__link wp-element-button\" href=\"tel:+19542316613\">Call us today<\/a><\/div><div class=\"wp-block-button chg-cta chg-cta-form\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/nrcpas.com\/contact\">Call us today<\/a><\/div><\/div>\n<\/div><\/div>\n\n\n<p class=\"wp-block-paragraph\" style=\"font-size:0.85rem;color:#6b7280;margin-bottom:1.5rem\">By Nischay Rawal \u00b7 Published October 21, 2026<\/p>\n\n<article lang=\"en\">\n\n\n<p>Key person insurance for franchise owner planning is a life insurance policy the business owns on a person whose death would harm the company. The business pays the premiums and receives the death benefit. This guide is for owners who are weighing that coverage after a health change, a partner&#8217;s loss, or a question from the franchisor.<\/p>\n<h2>What key person insurance is and who it is for<\/h2>\n<p>Key person insurance is a life insurance policy a business owns on a key individual. The <a href=\"https:\/\/www.iii.org\/publication\/insuring-your-business-small-business-owners-guide-to-insurance\/specific-coverages\/life-insurance-for-key-employees\">Insurance Information Institute<\/a> describes it as a way to compensate a business for financial losses caused by a key person&#8217;s death or disability.<\/p>\n<p>In a franchise, the key person is often the owner-operator, a managing partner, or a general manager. That person may hold the relationships with the franchisor, lenders, landlords, and the staff who run daily work. If that person dies, those relationships can be disrupted all at once.<\/p>\n<p>This coverage fits several common setups:<\/p>\n<ul>\n<li>A single owner-operator who carries a business loan.<\/li>\n<li>A franchisee with co-owners or investors.<\/li>\n<li>A multi-unit operator who depends on one manager across locations.<\/li>\n<\/ul>\n<p>For the wider category, see the <a href=\"\/life-insurance-guides\/key-person-insurance\/\">key person insurance guide<\/a>. Key person coverage is not the same as a buy-sell agreement, which sets how ownership passes. The two often work together.<\/p>\n\n<figure class=\"wp-block-image size-large has-custom-border\"><img decoding=\"async\" src=\"https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/a-bearded-mechanic-in-work-clothes-uses-a-tablet-beside-a-wo-photo.jpg\" alt=\"Bearded mechanic in workwear looks at a tablet while standing by a workbench in a workshop.\" style=\"border-radius:8px;width:100%;aspect-ratio:16\/9;object-fit:cover\"\/><\/figure>\n\n<div class=\"cta-dose-mid wp-block-group has-base-color has-accent-background-color has-text-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-32197852 wp-block-group-is-layout-constrained\" style=\"background-color:var(--wp--preset--color--accent,#20242e);color:var(--wp--preset--color--base,#ffffff);border-radius:8px;padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem;border-left:6px solid var(--wp--preset--color--cta,currentColor);box-shadow:0 2px 10px rgba(0,0,0,0.18)\">\n<h3 class=\"wp-block-heading has-base-color has-text-color\">Not sure what your next step is?<\/h3><p class=\"wp-block-paragraph\">Talk it through with our team &#8212; we can walk you through how a situation like yours is usually handled and what your options are.<\/p><div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\"><div class=\"wp-block-button chg-cta-call\"><a class=\"wp-block-button__link wp-element-button\" href=\"tel:+13058723096\">Schedule a coverage review<\/a><\/div><div class=\"wp-block-button chg-cta-form\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/nrcpas.com\/contact\">Schedule a coverage review<\/a><\/div><\/div>\n<\/div>\n<h2>What the policy covers and how the death benefit is used<\/h2>\n<p>The death benefit is paid to the business, not to the family. The business decides how to use the money. Common uses include:<\/p>\n<ul>\n<li>Replacing lost revenue during a transition.<\/li>\n<li>Recruiting and training a successor.<\/li>\n<li>Covering payroll and operating costs while the unit stabilizes.<\/li>\n<li>Meeting loan or lease obligations tied to the key person.<\/li>\n<\/ul>\n<p>Florida law sets a consent rule. Under <a href=\"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&amp;URL=0600-0699\/0627\/Sections\/0627.404.html\">Fla. Stat. \u00a7 627.404<\/a>, the insured person must consent in writing before the policy is bought. <a href=\"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&amp;URL=0600-0699\/0627\/Sections\/0627.404.html\">Fla. Stat. \u00a7 627.404<\/a> provides in subsection (5) that a contract of insurance upon a person, other than a policy of prepaid funeral contract, group life insurance, or group or blanket accident, health, or disability insurance, may not be carried out unless, on or before the time of entering into such contract, the person insured, having legal capacity to contract, applies for or consents in writing to the contract and its terms, except that any person having an insurable interest in the life of a minor younger than 15 years of age or any person upon whom a minor younger than 15 years of age is dependent for support and maintenance may obtain a policy of insurance on the minor. The statute also provides that a business entity, or any affiliate or subsidiary of the business entity, may not retaliate or take adverse action against any key employee or key person who does not consent to the issuance of insurance on the key employee or key person&#8217;s life.<\/p>\n<p>Term coverage lasts for a set number of years. Whole life coverage is permanent and builds cash value. The <a href=\"https:\/\/content.naic.org\/sites\/default\/files\/publication-lig-lp-consumer-life.pdf\">NAIC Life Insurance Buyer&#8217;s Guide<\/a> explains the difference between term and permanent policies. Whole life dividends are not guaranteed, and guaranteed and non-guaranteed values must be shown separately. To see how coverage supports the company after an owner dies, read keeping the company operating if an owner dies.<\/p>\n<h2>How the process works, step by step<\/h2>\n<p>The process starts with a coverage review, the firm&#8217;s first meeting on your case. The steps below show what to expect.<\/p>\n<ol>\n<li><strong>List the key person and the obligations tied to that person.<\/strong> Include franchisor requirements, loan covenants, and lease terms.<\/li>\n<li><strong>Hold a coverage review.<\/strong> Estimate the amount the business needs during a transition. Compare term and permanent options.<\/li>\n<li><strong>Apply and go through underwriting.<\/strong> Fully underwritten policies require health questions. Issue may depend on insurability.<\/li>\n<li><strong>Receive the policy.<\/strong><\/li>\n<li><strong>Review the coverage over time.<\/strong> Revisit it when the franchise adds units, adds an owner, or changes hands.<\/li>\n<\/ol>\n<p>Timing depends on the insured person&#8217;s medical records and the insurer&#8217;s underwriting. The business should plan around that timing, not around a fixed date.<\/p>\n<p>For a related scenario, see what happens when a business partner dies.<\/p>\n<h2>Cost, coverage amount, and whether it is worth it<\/h2>\n<p>Premiums depend on the insured person&#8217;s age, health, and tobacco use, plus the coverage amount and the policy type. This page does not quote premiums.<\/p>\n<p>Size the coverage from the business&#8217;s needs, not from a formula. Start with cash needed during a transition, then add debt and lease obligations. Compare that total with the cost of premiums over time.<\/p>\n<p>Two questions help decide whether the cost makes sense:<\/p>\n<ul>\n<li>Who would run the unit, and how long would it take to replace that role?<\/li>\n<li>How much of the business&#8217;s revenue depends on that one person?<\/li>\n<\/ul>\n<p>If the answers show a large gap, the coverage may be worth a closer look. If the business has other safeguards already in place, those belong in the same comparison.<\/p>\n\n<div class=\"cta-dose-mid wp-block-group has-base-color has-accent-background-color has-text-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-32197852 wp-block-group-is-layout-constrained\" style=\"background-color:var(--wp--preset--color--accent,#20242e);color:var(--wp--preset--color--base,#ffffff);border-radius:8px;padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem;border-left:6px solid var(--wp--preset--color--cta,currentColor);box-shadow:0 2px 10px rgba(0,0,0,0.18)\">\n<h3 class=\"wp-block-heading has-base-color has-text-color\">Have questions about what happened?<\/h3><p class=\"wp-block-paragraph\">Ask our team directly. Tell us what you are dealing with and we will explain how the process works from here.<\/p><div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\"><div class=\"wp-block-button chg-cta-call\"><a class=\"wp-block-button__link wp-element-button\" href=\"tel:+13058723096\">Talk to our team<\/a><\/div><div class=\"wp-block-button chg-cta-form\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/nrcpas.com\/contact\">Talk to our team<\/a><\/div><\/div>\n<\/div>\n<h2>Tax treatment from a CPA&#8217;s view<\/h2>\n<p>Under <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/101\">IRC \u00a7 101(a)<\/a>, death benefits are generally excluded from gross income. The exclusion has exceptions, including certain transfers of a policy for value.<\/p>\n<p>Interest on debt tied to a life insurance policy the business owns can be a problem. Under <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/264\">IRC \u00a7 264<\/a>, a deduction is generally denied for that interest.<\/p>\n<p>Employer-owned policies carry extra duties. <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/6039I\">IRC \u00a7 6039I<\/a> requires an applicable policyholder that owns employer-owned life insurance contracts issued after the statute&#8217;s enactment to file a return, at such time and in such manner as the Secretary prescribes, showing for each year the contracts are owned the number of employees, the number of employees insured, the total insurance in force, the policyholder&#8217;s name, address, taxpayer identification number and type of business, and that the policyholder has valid consent for each insured employee (or, if not all consents were obtained, the number of insured employees for whom consent was not obtained). Records needed to determine whether these requirements are met must also be kept.<\/p>\n<p>How these rules apply to a specific franchise depends on the facts, including entity type and who owns the policy. The firm reviews these items as part of its accounting work and coordinates them with the insurance recommendation.<\/p>\n<h2>Who may not qualify and what affects approval<\/h2>\n<p>The insured person must pass underwriting. Health history, age, and medical findings can limit approval or change the premium. A fully underwritten policy requires health questions, and issue may depend on insurability.<\/p>\n<p>Florida law ties this to an insurable interest, which must exist when the policy is bought. A policy larger than a reasonable business need can be declined or reduced.<\/p>\n<p>Owners who skip the consent step also risk the policy. Without the written consent required by <a href=\"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&amp;URL=0600-0699\/0627\/Sections\/0627.404.html\">Fla. Stat. \u00a7 627.404<\/a>, the insurance may not be carried out.<\/p>\n<h2>Why this firm for a Florida franchise<\/h2>\n<p>NR CPAs &amp; Business Advisors is a Miami CPA firm. It serves Florida business owners in Miami, Fort Lauderdale, West Palm Beach, Orlando, Tampa, and Jacksonville, as well as clients across the United States.<\/p>\n<p>Key person insurance is offered through Nischay Rawal, who acts as a licensed insurance agent. Florida law requires an agent to say so clearly and to identify the insurer, under <a href=\"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&amp;URL=0600-0699\/0626\/Sections\/0626.9531.html\">Fla. Stat. \u00a7 626.9531<\/a>. Insurance is offered separately from the firm&#8217;s accounting practice.<\/p>\n<p>If the firm accepts a commission for a product or service sold to a client, it discloses that fact to the client in writing. The firm offers no rebates or inducements to buy. Support staff handle scheduling and paperwork, and our team coordinates the insurance review with the business&#8217;s tax work.<\/p>\n\n<figure class=\"wp-block-image size-large has-custom-border\"><img decoding=\"async\" src=\"https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/a-craftsman-repairs-equipment-at-a-workbench-in-a-bright-spa-photo.jpg\" alt=\"A craftsman repairs equipment at a workbench in a spacious, light-filled workshop.\" style=\"border-radius:8px;width:100%;aspect-ratio:16\/9;object-fit:cover\"\/><\/figure>\n<h2>Common questions about key person insurance for franchise owners<\/h2><details class=\"wp-block-details chg-faq is-layout-flow wp-block-details-is-layout-flow\"><summary>Who owns a key person policy?<\/summary><p class=\"wp-block-paragraph\">The business owns the policy, pays the premiums, and receives the death benefit.<\/p><\/details><details class=\"wp-block-details chg-faq is-layout-flow wp-block-details-is-layout-flow\"><summary>Is key person insurance for franchise owner coverage worth it?<\/summary><p class=\"wp-block-paragraph\">It depends on how much the business would lose without that person and what obligations it carries.<\/p><\/details><details class=\"wp-block-details chg-faq is-layout-flow wp-block-details-is-layout-flow\"><summary>How much does it cost?<\/summary><p class=\"wp-block-paragraph\">Premiums depend on age, health, tobacco use, coverage amount, and policy type.<\/p><\/details><details class=\"wp-block-details chg-faq is-layout-flow wp-block-details-is-layout-flow\"><summary>Who may not qualify?<\/summary><p class=\"wp-block-paragraph\">People who do not pass underwriting, and cases without a documented business interest, may be declined.<\/p><\/details><details class=\"wp-block-details chg-faq is-layout-flow wp-block-details-is-layout-flow\"><summary>Does it replace a buy-sell agreement?<\/summary><p class=\"wp-block-paragraph\">No. A buy-sell agreement sets how ownership transfers, and the two can work together.<\/p><\/details><details class=\"wp-block-details chg-faq is-layout-flow wp-block-details-is-layout-flow\"><summary>Is the death benefit taxable income?<\/summary><p class=\"wp-block-paragraph\">Generally not, under <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/101\">IRC \u00a7 101(a)<\/a>, though exceptions apply.<\/p><p>If a co-owner&#8217;s health has changed, or a partner has died, and you are asking what the unit needs now, you do not have to sort it out alone. Call NR CPAs &amp; Business Advisors today at <a href=\"https:\/\/nrcpas.com\/contact\">nrcpas.com<\/a> to set up a coverage review.<\/p><\/details><\/article>\n<footer class=\"disclaimer\"><em>NR CPAs &amp; Business Advisors, LLC, 782 NW 42nd Avenue, Suite 534, Miami, FL 33126. Life insurance is offered by Nischay Rawal, a Florida-licensed life and health insurance agent (license G066337). This page is general information about life insurance, not tax, legal or investment advice, and not an offer of any specific policy. Coverage, premiums and benefits depend on the issuing insurer&#x27;s underwriting and the policy&#x27;s terms. Policy loans and withdrawals reduce cash value and the death benefit and may have tax consequences.<\/em><\/footer>\n\n\n<div class=\"wp-block-group alignwide has-global-padding is-layout-constrained wp-container-core-group-is-layout-583d630a wp-block-group-is-layout-constrained\" style=\"padding-top:3rem;padding-bottom:3rem;padding-left:1.5rem;padding-right:1.5rem\">\n\n<div class=\"cta-dose-mid wp-block-group has-base-color has-accent-background-color has-text-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-32197852 wp-block-group-is-layout-constrained\" style=\"background-color:var(--wp--preset--color--accent,#20242e);color:var(--wp--preset--color--base,#ffffff);border-radius:8px;padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem;border-left:6px solid var(--wp--preset--color--cta,currentColor);box-shadow:0 2px 10px rgba(0,0,0,0.18)\">\n<h3 class=\"wp-block-heading has-base-color has-text-color\">Want to know where you stand?<\/h3><p class=\"wp-block-paragraph\">Tell us about your situation and our team will walk you through the options available to you.<\/p><div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\"><div class=\"wp-block-button chg-cta-call\"><a class=\"wp-block-button__link wp-element-button\" href=\"tel:+13058723096\">Request a coverage review<\/a><\/div><div class=\"wp-block-button chg-cta-form\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/nrcpas.com\/contact\">Request a coverage review<\/a><\/div><\/div>\n<\/div>\n<h2 class=\"wp-block-heading has-text-align-center\">How we approach key person coverage<\/h2>\n<div class=\"wp-block-columns alignwide is-layout-flex wp-container-core-columns-is-layout-f56f613f wp-block-columns-is-layout-flex\"><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><p class=\"wp-block-paragraph\"><span class=\"chg-icon chg-icon--users\"><\/span><\/p><h3 class=\"wp-block-heading\">Focused on franchise owners<\/h3><p class=\"wp-block-paragraph\">We look at how much the franchise depends on one person, including owners, managers and other people whose absence would affect operations.<\/p><\/div><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><p class=\"wp-block-paragraph\"><span class=\"chg-icon chg-icon--lightbulb\"><\/span><\/p><h3 class=\"wp-block-heading\">A CPA&#x27;s view of cash flow<\/h3><p class=\"wp-block-paragraph\">We consider how premiums, tax treatment and business cash flow fit together before any coverage is discussed.<\/p><\/div><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><p class=\"wp-block-paragraph\"><span class=\"chg-icon chg-icon--document\"><\/span><\/p><h3 class=\"wp-block-heading\">Plain-language explanations<\/h3><p class=\"wp-block-paragraph\">Terms such as ownership, premium, beneficiary and death benefit are explained in everyday words so you know what you are reviewing.<\/p><\/div><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><p class=\"wp-block-paragraph\"><span class=\"chg-icon chg-icon--shield\"><\/span><\/p><h3 class=\"wp-block-heading\">Coverage that matches the business<\/h3><p class=\"wp-block-paragraph\">Whole life and term life options can be compared against the obligations your business carries, such as loans and lease commitments.<\/p><\/div><\/div>\n\n<\/div>\n\n\n\n<div class=\"wp-block-group has-base-color has-accent-background-color has-text-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-32197852 wp-block-group-is-layout-constrained\" style=\"background-color:var(--wp--preset--color--accent,#20242e);color:var(--wp--preset--color--base,#ffffff);border-radius:8px;padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem;border-left:6px solid var(--wp--preset--color--cta,currentColor);box-shadow:0 2px 10px rgba(0,0,0,0.18)\">\n<h3 class=\"wp-block-heading has-base-color has-text-color\">Important to know<\/h3><p class=\"wp-block-paragraph\">Key person insurance is not the same as a personal life policy. Whether a policy is issued depends on the health questions and underwriting of the insured person. Policy terms, limitations and exclusions vary, so review them with your licensed agent before you decide.<\/p><div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\"><div class=\"wp-block-button chg-cta-call\"><a class=\"wp-block-button__link wp-element-button\" href=\"tel:+19542316613\">Call us today<\/a><\/div><div class=\"wp-block-button chg-cta-form\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/nrcpas.com\/contact\">Call us today<\/a><\/div><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-group alignfull has-surface-background-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-583d630a wp-block-group-is-layout-constrained\" style=\"padding-top:3rem;padding-bottom:3rem;padding-left:1.5rem;padding-right:1.5rem\">\n<h2 class=\"wp-block-heading has-text-align-center\">How a key person policy is structured<\/h2>\n<div class=\"wp-block-columns alignwide is-layout-flex wp-container-core-columns-is-layout-f56f613f wp-block-columns-is-layout-flex\"><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><div class=\"wp-block-group has-base-background-color has-background is-layout-flow wp-block-group-is-layout-flow\" style=\"border-radius:8px;box-shadow:0 4px 14px rgba(0,0,0,0.08);padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem\"><h3 class=\"wp-block-heading\">Ownership<\/h3><p class=\"wp-block-paragraph\">In a key person arrangement, the business typically owns the policy and is named to receive the death benefit.<\/p><\/div><\/div><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><div class=\"wp-block-group has-base-background-color has-background is-layout-flow wp-block-group-is-layout-flow\" style=\"border-radius:8px;box-shadow:0 4px 14px rgba(0,0,0,0.08);padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem\"><h3 class=\"wp-block-heading\">Premiums<\/h3><p class=\"wp-block-paragraph\">The business usually pays the premiums, so the cost is reviewed against the company&#x27;s budget and cash flow.<\/p><\/div><\/div><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><div class=\"wp-block-group has-base-background-color has-background is-layout-flow wp-block-group-is-layout-flow\" style=\"border-radius:8px;box-shadow:0 4px 14px rgba(0,0,0,0.08);padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem\"><h3 class=\"wp-block-heading\">Death benefit<\/h3><p class=\"wp-block-paragraph\">The benefit is intended to help the business cover lost income, recruiting costs and other obligations during a transition.<\/p><\/div><\/div><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><div class=\"wp-block-group has-base-background-color has-background is-layout-flow wp-block-group-is-layout-flow\" style=\"border-radius:8px;box-shadow:0 4px 14px rgba(0,0,0,0.08);padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem\"><h3 class=\"wp-block-heading\">Coverage review<\/h3><p class=\"wp-block-paragraph\">Our coverage review looks at the policy type, face amount and how the arrangement fits your business goals.<\/p><\/div><\/div><\/div>\n\n<\/div>\n\n\n\n<div class=\"wp-block-group alignfull has-base-color has-primary-background-color has-text-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-4d466591 wp-block-group-is-layout-constrained\" style=\"background-color:var(--wp--preset--color--primary,#20242e);color:var(--wp--preset--color--base,#ffffff);padding-top:3rem;padding-bottom:3rem;padding-left:1.5rem;padding-right:1.5rem\">\n<h2 class=\"wp-block-heading has-text-align-center has-base-color has-text-color\">Protect your business and the people who depend on it. Call us today to schedule a coverage review.<\/h2>\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-0aa01211 wp-block-buttons-is-layout-flex\"><div class=\"wp-block-button chg-cta chg-cta-call\"><a class=\"wp-block-button__link wp-element-button\" href=\"tel:+19542316613\">Call us today<\/a><\/div><div class=\"wp-block-button chg-cta chg-cta-form\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/nrcpas.com\/contact\">Call us today<\/a><\/div><\/div>\n<\/div>\n\n<h2 class=\"wp-block-heading\">Related practice areas<\/h2><ul class=\"wp-block-list\"><li><a href=\"\/life-insurance-guides\/key-person-insurance\/key-person-insurance-foreign-national-owner\/\">Key Person Insurance for a Foreign National Owner or Officer: What a US Company Needs to Know<\/a><\/li><li>What Happens to My Business if My Partner Dies<\/li><\/ul>\n<!-- chg:section-siblings -->\n<nav aria-label=\"More in this section\">\n<h2>More in this section<\/h2>\n<ul><li><a href=\"\/life-insurance-guides\/key-person-insurance\/key-person-insurance-green-card-sponsor-employer\/\">Key Person Insurance for Companies That Sponsor an Employee&#x27;s Green Card<\/a><\/li><li><a href=\"\/life-insurance-guides\/key-person-insurance\/key-person-insurance-h1b-l1-business-owner\/\">Key Person Insurance for an H-1B or L-1 Business Owner: Coverage, Ownership and Visa Questions<\/a><\/li><li><a href=\"\/life-insurance-guides\/key-person-insurance\/key-person-insurance-h1b-l1-employee\/\">Key Person Insurance on an H-1B or L-1 Employee: Insurable Interest, Visa Status and Who Owns the Policy<\/a><\/li><li><a href=\"\/life-insurance-guides\/key-person-insurance\/key-person-insurance-health-condition-what-to-do\/\">What Happens If the Key Person Has a Health Condition? Insurability and Key Person Coverage<\/a><\/li><li><a href=\"\/life-insurance-guides\/key-person-insurance\/key-person-insurance-how-insurers-set-amount\/\">How Do Insurers Decide How Much Key Person Coverage a Business Can Get?<\/a><\/li><\/ul>\n<\/nav>\n<!-- \/chg:section-siblings -->","protected":false},"excerpt":{"rendered":"<p>Key person insurance for franchise owner coverage in Florida: how the policy works, tax rules, and how to set up a coverage review with NR CPAs.<\/p>\n","protected":false},"author":2,"featured_media":0,"parent":16,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"chg_review":"","chg_sendback":"","chg_canonical":"","chg_lang":"","chg_hreflang":"[{\"hreflang\": \"en\", \"href\": \"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/key-person-insurance-franchise-business\/\"}, {\"hreflang\": \"es\", \"href\": \"https:\/\/nrcpas.com\/life-insurance-guides\/es\/seguro-persona-clave\/seguro-personas-clave-franquicias\/\"}, {\"hreflang\": \"x-default\", \"href\": \"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/key-person-insurance-franchise-business\/\"}]","chg_jsonld":"[{\"@context\": \"https:\/\/schema.org\", \"speakable\": {\"@type\": \"SpeakableSpecification\", \"cssSelector\": [\"article > p:first-of-type\", \".wp-block-details p\", \"article > h1\"]}, \"author\": {\"@type\": \"Person\", \"name\": \"Nischay Rawal\", \"url\": \"https:\/\/nrcpas.com\/author\", \"jobTitle\": \"Managing Partner, CPA, EA and Licensed Life Insurance Agent\", \"sameAs\": [\"https:\/\/licenseesearch.fldfs.com\/Licensee\/2306161\", \"https:\/\/www.myfloridalicense.com\/portalsearches\/VerifyLicensee\/LicenseDetail?ID=D6E76E58125054CFA98C8D92AF9DBC44\", \"https:\/\/www.taxbuzz.com\/florida\/miami\/nr-cpas-and-business-advisors-llc\", \"https:\/\/x.com\/nrawal786\", \"https:\/\/www.linkedin.com\/in\/nischay-rawal-cpa-ea-22741924a\/?isSelfProfile=false\"]}, \"publisher\": {\"@type\": \"Organization\", \"@id\": \"https:\/\/nrcpas.com\/life-insurance-guides\/#organization\", \"name\": \"NR CPAs & Business Advisors\", \"url\": \"https:\/\/nrcpas.com\/\"}, \"reviewedBy\": {\"@type\": \"Person\", \"name\": \"Erika Trinidad\", \"jobTitle\": \"Accountant\"}, \"inLanguage\": \"en\", \"mainEntity\": [{\"@type\": \"Question\", \"name\": \"Who owns a key person policy?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"The business owns the policy, pays the premiums, and receives the death benefit.\"}}, {\"@type\": \"Question\", \"name\": \"Is key person insurance for franchise owner coverage worth it?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"It depends on how much the business would lose without that person and what obligations it carries.\"}}, {\"@type\": \"Question\", \"name\": \"How much does it cost?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"Premiums depend on age, health, tobacco use, coverage amount, and policy type.\"}}, {\"@type\": \"Question\", \"name\": \"Who may not qualify?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"People who do not pass underwriting, and cases without a documented business interest, may be declined.\"}}, {\"@type\": \"Question\", \"name\": \"Does it replace a buy-sell agreement?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"No. A buy-sell agreement sets how ownership transfers, and the two can work together.\"}}, {\"@type\": \"Question\", \"name\": \"Is the death benefit taxable income?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"Generally not, under IRC \u00a7 101(a), though exceptions apply.If a co-owner's health has changed, or a partner has died, and you are asking what the unit needs now, you do not have to sort it out alone. 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